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HomeMy WebLinkAboutMIN 01.26.2009 CC-WThe City Council of the City of Georgetown, Texas, met in Regular Session on the above date with Mayor George Garver presiding. Council Present: CouncilAbsent: Patty Eason, Gabe Sansing, Dale Ross, Pat Keith Brainard Berryman, Bill Sattler, Ben Oliver Staff Present, Paul E. Brandenburg, City Manager; Patricia E. Carls, City Attorney; Kevin Russell, Human Resources Director; Micki Rundell, Director of Finance and Administration; Ed Polasek, AICP, Principal Planner; Cathy Leloux, Municipal Court Clerk; Elizabeth Cook, Interim Community Development Director; Kathy Ragsdale, Utility Office Director; Leticia Zavala, Controller; Keith Hutchinson, Public Information Officer; Jim Briggs, Assistant City Manager for Utility Operations; A Williams Drive Gateway Masterplan Overview and Update -- Paul Brandenburg, City Manager and Elizabeth Cook, Director of Planning and Development With a slide presentation, Brandenburg reviewed the Williams Drive Gateway Master Plan. He spoke about what it is, how it came about, and where it is going. He showed Council a map of and outline of the area. He spoke about the study area and said McCoy Elementary is the epicenter of the City. He spoke about the changes that have occurred in this area. He said the area is a major interchange into the community and the City views this area as very under -developed and under-utilized. He added transportation is a huge issue and this project could alleviate some of the problems. He said this matter has been debated a lot publicly and listed the many meetings in which it has been discussed. He went over the Williams Drive Gateway Redevelopment Plan Community image survey results and spoke about how citizens envision what the City of Georgetown should look like in the future. He said the Williams Drive Gateway project will not take anything away from the Downtown area. He spoke of the five sections contained in the Redevelopment Master Plan; public consensus, connectivity and access, development typologies and uses, context and environment, and phasing and implementation. Brandenburg said the plan de-emphasizes the frontage roads and the highway and added connectivity and transportation are greatly enhanced by the project. He noted this plan will improve the aesthetics of the area as well. He spoke about the housing aspects of the plan and the connectivity between this development and the convention center. He noted this is an ambitious plan which is going to be formed over the next 15 or 20 years and said it is strategically located between the downtown and northwest areas. He said the plan was adopted on September 27, 2005 and approved on April, 25, 2006. He spoke about mixed use zoning and how it will create incentives and bring more interest to the area. He said the City will be looking into increasing the possible height of structures as well as the impervious cover on the east side of 1-35. He spoke about the duties of the Wiliams Drive Tax Reinvestment Zone (TIRZ) and listed its Board of Directors. He said the timing and schedule of redevelopment is dictated by private development, market conditions, and public/private partnerships and involvement. He listed decision points and items to be discussed at a later date. City Council Meeting Minutes/January 26, 2009 Page 1 of 5 Pages B First Quarter 2008/09 - Financial Overview & 2009/10 Budget Preview -- Micki Rundell, Director Finance & Administration With a Powerpoint presentation, Rundell reviewed the Budget Contingency Update and said she will review an estimate of next year's budget. She went through a 2008/09 General Fund Overview. She noted the general fund revenues are not as the City anticipated. She said the year end revenues are expected to be as much as $2.5 million less than budget. She spoke of efforts made to offset that shortfall. She mentioned the revenues from property and sales tax. She said sales tax for October and November was down 8.86% and added this is a 14% decrease from the City's budget, which is a little over $1 million. She said Wolf Ranch is down about 6%, which is in line with what is happening regionally. She showed Council a graph of sales tax trends month to month over the past five years. She said the City's high point was in December of last year. She noted development related revenues are down 40% through the first quarter when compared quarter to quarter. She said building permits are down 41 % and planning fees are down 80% over the last year. Mayor asked and Rundell confirmed all of these reductions are included in the $2.5 million shortfall. She spoke of the building permit trend analysis and said those revenues will continue to decline. She compared Georgetown's building permits to other cities in the area and said the City looks pretty good in comparison. She spoke about other revenues, saying court fines are down 23.52%, interest income had an estimated decrease of 50% due to lower investment yield, library revenues are down 10% and misc. revenues are down 2.31%. She said the exception to this trend are Parks and Rec. related revenues, which are flat, as well as ROI/Franchise Fees which are 4.9% greater than previous year. She spoke about expenditure savings, including the "freeze" of hiring new positions which results in $1.5 million in savings. She showed Council the ending balance, saying the City is $1.4 million short on policy compliance. She said the estimated 08/09 ending balance is $875,000, but $325,000 of that amount has been committed to funding the fuel increase for the satitation/garbage fuel fee. She noted there is about $500,000 left of the ending fund balance that is not spoken for at this point. She said, on the brighter side, the utility funds have been higher than anticipated. She said development fees are down but, overall, utility funds are ahead or on track to meet or exceed the budget. She spoke about the other contingency items underway, including delays in capital purchases, delaying renovation projects, and reviewing all "non-essential" spending. Rundell showed Council the 2009/10 Budget Preview. She said there is a $500,000 budget shortfall, which does not include any other adjustments that might occur for inflationary adjustments. She added staff revised revenue projections and there is a flat growth on sales tax. She said there are some 2009 tax rate concerns and mentioned factors for consideration. She said the appraisal district has been "mum" about projections but staff has estimated a flat or 3% decrease. She spoke of the impacts of the 2008 bond issues. She listed possible solutions for Council's consideration including an increase in ROI from utilities to the general fund from 8 to 8.5%, continuing to "freeze" open positions, making sure that increase in programs are offset by other budget reductions, funding shortfall with "rainy day" funds, or the possibility of raising property taxes. She said, in conclusion, the 2008/09 General Fund is balanced with excess funds from prior year, but Council will have to look into reduced funding for the 09/10 budget. Oliver asked and Rundell said the $500,000 shortfall in 2009/2010 assumes the City will "un -freeze" the positions that have been "frozen." Rundell said staff will be coming back to Council with these type of reports quarterly. C Legal Services Subcommittee Report -- Dale Ross, Councilmember District 6 Ross reviewed Council's legal options. He said in house counsel has been done before at the Clty and noted 7 of the last 20 years has been outsourced legal counsel. He said the committee is recommending item C that was given to Council, which exercises the current contractual provision of ninety (90) days notice and then transitions the City to a full time in-house legal services department in 2009. He said in-house Council would result in at least $500,000 in savings over 7 years. He referred Council to the legal services spreadsheet that was provided. He said the recommendation is to hire a City Attorney, an Assistant City Attorney, and a Paralegal. He said the City will need to continue to use outside legal counsel for specialty items. He noted he spoke to Cedar Park about this type of transition and said Cedar Park is glad they made the change for a lot of non-financial as well as financial reasons. He noted the biggest opportunity in this decision would be to control costs going forward. Ross reviewed the recommendation to be brought before Council at Tuesday's meeting. Ross referred to the financial analysis which includes the outside services alongside what it would cost for in house legal. Ross mentioned salaries and said the ones proposed are reasonable for the area. He reviewed the estimated savings by going with an in-house City Attorney. Mayor asked and Brandenburg said he did not have a good chance to look at the numbers, but he will. D Transit PILOT Update -- Ed Polasek, AICP, Principal Planner With a Powerpoint presentation, Polasek reviewed Phase 1 of the CARTS Pilot Program. He told the Council City Council Meeting Minutes/January 26, 2009 Page 2 of 5 Pages about the budget process that established the Pilot program and reviewed the history of the transit system. He said there was $75,000 in the budget to gauge ridership in the program and toconduct a Pilot transit program. He added, using the Interlocal agreement with CARTS, staff looked at possible phases for the Pilot program with the Transit Route Working Group. He reviewed the Phase One route and its ridership saying it has has been in operation since November 28. He noted, out of 43 days of service, there were 1475 riders, which averages to 3.4 riders per hour of service. He said the rider per hour statistic has gone up to 3.7 for the month of January. He noted CARTS finds five riders per hour "very good" for a transit program. He said Sun City is the only true origin for trips and the downtown has been the main destination. He said some of the lessons learned so far in Phase One are that the public desires more origin locations. He added another thing learned is that hours of service are not conducive to the hospital. He noted the cost of publicity and signage has been hidden, and $1,300 has been spent through the Public Information Office for publicity and the Streets Department for signage. Polasek said the last day of service for Phase One, according to the original agreement, would be Feb. 7, 2009. He said 901.5 hours of service remain for the pilot program budget and the Transit Fixed Route Recommendation has worked on a proposal for Phase Two. He showed Council a map of the Phase Two proposal. He said the recommendation is a two bus system with a transfer point. He said the first route is Phase One with different origins and the second route is through the Southeast area of the City. He noted service is being proposed from 8am to 8pm. He said the Southeast route would add stops throughout the neighborhoods, at the Boys and Girl's Club and at the HEB on University Ave. He said he spoke with CARTS and the earliest start date for the second phase is March 2, 2009. He spoke about the Phase Two costs and added, if Phase Two starts on March 2nd, all funds would be expended by April, 11 2009. He said there is 18 days of service between the Phase One end date and the start date for Phase Two. He said it would cost $8,550 to continue Phase 1 to match up with the beginning of Phase Two. He said staff is looking for direction on five issues: issue of interim service, issue of length of service for Phase Two, the interlocal agreement for length of service, funding sources, and how to fund additional phases. Oliver said and Polasek noted the $75,000 pays for Phase one and Phase two at a shorter time period. Polasek said the current proposal is to keep the Phase One route while also conducting Phase Two. Oliver said and Polasek agreed the additional costs are because two routes will run at once. Mayor asked and Polasek said a third phase could exist if funds are available, but if Council agrees to what is proposed, all of the money will be used up by the middle of April. Sansing asked and Polasek said the delayed start date of Phase Two is because publicity can not be completed by that time, and CARTS could not get the drivers hired or a bus available until March. Sattler asked and Polasek said, by moving service to 8am, the City will be able to provide service to social service organizations and hospitals. Berryman asked and Polasek said, the cost of service is $475 per day and about $19 per rider. Eason said this pilot was put together to prove interest and ridership and there was no intention to look at financial cost. She said it is obvious that, when there is a limited route, the cost per rider will be much higher. She added the program has proven above average interest in ridership. She noted the Phase One route was a limited use, limited destination route. She added it was a shopper route with one origin. Sattler asked and Polasek said the current bus service with CARTS is at full capacity. Sattler said he is concerned because he sees buses running with no people on them. Polasek said the peak ridership is the early route and the evening route around dinnertime. He added there is usually a lull in the afternoon and the last route is usually empty. Sattler said he wonders if there are any other modifications the City can make in order to move the hours up to 8am' while not spending more money. Polasek noted Phase Two has a stop at the elementary school in the afternoon right after school in order to fill up that time period. Sattler asked if one bus could be used during the day and more than one bus during the busier hours of the day. Polasek said CARTS would have to find part time drivers for that type of service. Oliver asked and Polasek said the ideal length for a test route is a minimum of 90 days. Oliver said it is important to test the second route in Phase Two in order to obtain a sense of ridership and commitment in other parts of the community. Eason said she has an issue with that because she sees the value in having two buses with a transfer that connects two different routes. Oliver said and Eason agreed the intent is to run a second route alongside the first route and see how they interact as well as the way people would use them. Eason said it will not only creating movement on the east side, but it will expand the opportunities for people in Sun City to transfer buses and get throughout the City easier. Polasek said, if the direction is to run just one route, the working group will have to meet to review the route and have it reworked. Oliver said the preferable solution is to do two routes, but the question is the availability of funds to run both routes simultaneously. He added Phase two is supposed to be a fuller test of ridership. Sattler said he would like to see if staff can research the under -utilization during the day and tax payers looking at empty buses does not gain support. Berryman stressed the importance of having a stop at the Wesleyan. Eason said, for Phase One, Council was only given three weeks to plan it out. She added the Working Group had to rearrange the second route in order to make the first route doable in the time allotted. Berryman said the City Council Meeting Minutes/January 26, 2009 Page 3 of 5 Pages bottom line is that staff is asking for an additional $34,550 minimum for the extension of Phase One. Oliver asked what Council's options are in order to pay for additional service in 2009. Brandenburg spoke of the possible funding sources. Mayor asked about what would happen if Council decided to do nothing. Polasek said the City would stop service on Phase One on February 7 and then, on March 2nd, staff would need a notice to proceed to fund up to 36 days of Phase Two. He added there would be no money for publicity or signage. Oliver asked and Polasek said, in this instance, the City would have both routes in Phase Two. Polasek said, no matter what the City decides to do, the charges are $50 per hour. Berryman asked and Polasek agreed on the original three proposed routes, but there is only $45,000 left to help conduct the next two phases. Berryman said and Polasek agreed there is not enough money left to completely perform next two phases. Oliver said the original phase two was testing a separate route but this proposal is to combine both phase one and phase two routes. Polasek spoke about the logic of combining the two routes for Phase Two. Mayor asked and Polasek agreed this is the first time the Council has seen the melding of the two routes. Mayor said the question to Council is to continue as planned until the money is expended, or continue as per the recommendations of the Working Group as well as to investigate other funding sources. Mayor asked and Polasek said the total cost to the City at the conclusion of the second phase would be a little over $100,000. Polasek said this does not include the third phase. Polasek said staff is requesting $64,550 to complete the project as recommended by the Working Group in order to fund the third month of testing for Phase Two. Sansing mentioned the possibility of a part time driver as well as only having a bus on the east side in the morning during peak ridership times. He added it is important to make the schedule fit the money. Mayor asked and Polasek said the plan was to have both routes continue to meet at Wolf Ranch every hour and 10 minutes throughout each day. Mayor asked and Polasek said the total amount of money requested to follow through with these recommendations is $64,550 to run phase two for three months, including running Phase One until Phase Two begins. Ross said and Polasek agreed the original cost was $75,000 and staff is requesting an additional $64,550 to perform two routes in one phase to put the grand total at $139,000. Ross said and Polasek confirmed Council will not get three routes out of that amount. Eason said the second phase will be two routes in one, so the first and second Phases could be considering three routes. Ross said and Eason said this is unfair to call this program overbudget. Eason said the $75,000 was for a consulting fee and not for the actual pilot study. She said the pilot study was a separate idea. She noted the $75,000 was never intended as a budget for the pilot study. Berryman said she understood the $75,000 was used as the barameter to be used for instituting the PILOT program, which they were told was to include three phases. Oliver said and Polasek agreed, after February 2nd, there is $45,000 left in the program. Oliver noted and Polasek confirmed only $30,000 has been spent on Phase One. Polasek said the plan was to allocate $25,000 for each of three phases and the Council voted to add $5,000 to the first phase for an extra 100 hours of service. Berryman said, if Council went with the original plan, there will be a change to the hours of service but the cost would be lower. Saftler shared his views on the first and second routes. He said this current proposal would be blending phase one and two. Berryman added it would also add in a little mutated version of phase three. Sattler asked, if the City moves with Phase Two as originally planned, it would be an 8am-5pm type program Monday through Friday. Berryman said she really wants to get maximum ridership information and she added it would be good to see a blended approach. Berryman said she would like to offer the service but she is concerned by the cost of everything and whether the City can afford this in the budget. Sansing said the $45,000 left only gives the City 18 days of service. Berryman said, if the City chips in $5,000, the City can go ahead with the original plan and not this blended approach. Eason suggested the City will get a better idea of ridership with the addition of more destinations. She said the City can not test a bus service and she has been amazed that this PILOT has workedso well on such an awful route. Eason mentioned the siren project and the money she wanted to take out of that project for this bus service. She said she would rather fully fund a good pilot in order to get the best numbers. Sansing said this is a very costly service per person. He asked and Eason said she has all of the information she needs and added the City should stop a PILOT and start in with a full system. Eason asked and Polasek said it is $475 a day to run one bus at 9 1/2 hours per day. Sansing said that cost will be twice as much with the proposed two buses. Sattler asked and Polasek said, if Council wants to move forward with the original plan and not this combined route, he would need 30 days lead time in order to establish everything and set up the route schedule. Oliver said he sees two choices: go back to the original plan or approve the recommendation from the Working Group. Sattler said the second option would leave the Council without funds to do Phase Three. There was much discussion. Berryman asked and Polasek said the buses accommodate handicap people and bicycles. Oliver said he is more clear now on what Council's options are for tomorrow night's meetings. Recessed to Executive Session -- 6:05pm Returned to Open Session and Adjourned -- 7:08pm City Council Meeting Minutes/January 26, 2009 Page 4 of 5 Pages The meeting was adjourned at 07:08 PM. Approved ' Mayor George Garver City Council Meeting Minutes/January 26, 2009 Page 5 of 5 Pages Attests 0 WIA ty Secrefar J sica Hamilton .O ` x _ . 4_